Wilmar reports earnings of US$550.9 million for 1HFY2023, eyes better second half

Wilmar expects new businesses such as condiments to contribute significantly down the road

Wilmar International has reported earnings of US$550.9 million for 1HFY2023, down 52.7% y-o-y. Revenue in the same period ended June was down 10% y-o-y to US$32.5 billion. While sales volume increased, prices of commodities dropped, the company says.

Despite the lower earnings, Wilmar plans to maintain an interim dividend of 6 cents per share.

Kuok Khoon Hong, chairman and CEO, says that the 1HFY2023 numbers were impacted by lower palm oil and fertiliser prices, as well as lower processing margins for our mid and downstream operations.

"These were partially offset by strong performance from sugar and shipping divisions," he adds.

Kuok notes that the company has made "good progress" in its new businesses such as condiments, and so-called Food Park and Central Kitchen projects.

These new businesses are expected to be significant contributors to Wilmar's operations in future.

"Barring unforeseen circumstances, we believe the second half of 2023 will be better than 1H2023," says Kuok.

Wilmar shares closed at $3.81 on Aug 11, down 0.78% for the day and down 7.3% year to date.

See Also:

• Click here to stay updated with the Latest Business & Investment News in Singapore

• Adani Enterprises weighs exiting US$6 billion Wilmar venture

• UOBKH upgrades plantation sector to 'overweight' on share price strengthening expectations

• Wilmar's ESG efforts 'commendable', company 'undervalued' against Chinese peers: RHB

• Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World

• Get in-depth insights from our expert contributors, and dive into financial and economic trends

• Follow the market issue situation with our daily updates

• Or want more Lifestyle and Passion stories? Click here